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How To Secure Finance For Your Investment

April 12, 2017

Big ambitions are worth pursuing, but only if you have a firm grasp of the practicalities. Franchising is a sound, forward-thinking investment, and we’re serious about helping you make it pay off in every way imaginable. Yet we also want to prepare you for the challenges to your financing, before you’ve signed the dotted line on your franchise bid.

To dispel any doubts you might have, here’s a step-by-step exploration of the financing process: what to do, how to verify yourself, and which hurdles could stand in your path…

Step 1 – Identify your franchise investment

The initial question, of course, is ‘what am I going to invest in?’ When comparing franchise opportunities, it’s vital to narrow down your options. Compare what the likely returns on investment might be, and what’s included in your entry fee. You’ll soon have a price tag to aim for, and a brand to begin talking to.

Step 2 – Calculate your cash projections

If you have funds saved up, then great – that’ll be an instant boon to your investment pot. However, we suspect that many of you will encounter a shortfall. Define it, and pair it with the working capital you’ll need to keep the business afloat in its opening months. This is the ultimate stake you’ll have to acquire for sustainable financing.

Step 3 – Start looking at lenders

Now that you have a solid sum to aim for, you can shop around for different lenders and see what options are on the table. An established franchisor, like Rainbow International, will suggest banks that can cover some or most of the investment with favourable terms, so you can maximise your financial flexibility.

Step 4 – Re-check your eligibility

Sourcing investment doesn’t merely rely on calculating everything accurately. Lenders like applicants who are dependable and driven. Not having a long-term business plan will harm your viability. The same goes for a credit rating: if it’s in tatters, consider yourself black-marked on the lender list. We strongly advise you to perform a personal credit check before you make an official application, since a bad score will lower your status even further.

Step 5 – Finalise the submission

With everything else catered for, double-checked by the experts, you’re good to go on that application! The reply can come in several forms: an instant ‘yes’, a request for further information, or a flat-out rejection. However, with the right support, the latter decision is unlikely….

Rainbow International actually take the funding process a step further. We’re at your side through all of the planning, reviewing and financing you’ll deal with. We also have tight relationships with several leading UK banks, so up to 70% of your investment has a chance of being covered – surely a game-changer for this opportunity.

Interested in franchising with us? Contact us on 01623 675100 to discuss the options available to you.